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2018 (1) TMI 271

Security Agency Service - demand of service tax - Held that: - identical issue decided in the case of The Deputy Commissioner of Police Jodhpur, Superintendent of Police Versus Commissioner of Central Excise and Service Tax, Jaipur [2016 (12) TMI 289 - CESTAT NEW DELHI], where it was held that police department, which is an agency of the State Govt., cannot be considered to be a person engaged in the business of running security services. Consequently, the activity undertaken by the police is not covered by the definition of Security Agency under Section 64(94) of the Act - appeal allowed - decided in favor of appellant. - S. T. CoD Nos. 50987 & 50997 of 2017 in S. T. Appeal No. 51854 & 51861 of 2017 - Final Order Nos.50010-50011/2018 - Dat .....

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before the Tribunal in assessee s own case (Final Order Nos.55321 - 55348 dated 25.11.2016) where it was observed that- 46. Payment for Police service.- The State Government may levy from any person, who carries on any such occupation, gathering, exhibition, sale, entertainment, etc. for monetary gain, as may, for the purpose of public security or for the maintenance of public peace or order, require deployment of additional police force, such user charges as may be prescribed. (ii)The fee collected should be levied as per the provision of relevant law. The State Government, in exercise of powers conferred under Section 46 of the Police Act issued two notifications wherein the charges to be recovered for providing additional police force f .....

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The fees levied and collected for this purpose is strictly as per the Notification issued by the State Govt. under the above Section of the Act. The amounts so collected are mandatorily deposited into the Govt. treasury. Accordingly, they have submitted that all the conditions stipulated by the CBEC circular are satisfied and consequently the activities are to be considered as statutory function and no service tax can be levied on such fees collected for discharging the sovereign function. The lower authorities have, however, taken the view that the activity undertaken is not in the nature of statutory duty, but an activity undertaken for a consideration which is not a statutory fee. We find ourselves unable to agree to this stand taken by .....

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